How to Become a Successful Real Estate Investor

With the real estate sector witnessing phenomenal growth in recent years, investment opportunities in the sector have increased manifold. However, becoming a successful real estate investor is not everyone's cup of tea. One needs to understand the various aspects and the risk factors involved to become an efficacious investor. It is also important to decide the goals you want to achieve through real estate investing.

Study the market

Before spending in the sector, it is essential to study the market well. A successful investor is well aware of the current market scenario. Keep a track of the latest developments through newspapers, internet and other modes of communication. You need to have an analytical approach and think the pros and cons of each development.

Have a proper game plan

Proper plan is one of the key traits of prosperous private real estate investors. List your investment plans on paper and analyze it. Find out if there are any loopholes in your plan and get it checked by seasoned campaigners. There are certain questions you need to answer before spending. They are:-

• How many properties do you want to buy?
• How you plan to get a high return on investment?
• Which sector (commercial, residential, retail) is your focus?
• How will you arrange the funds?
• What are the risk factors?

Assemble a team

Making money in the real estate depends a lot on your team. All prosperous investors have a core team with specific tasks. Appraisers, contractors, lenders, agents and attorneys are the key members of team who will aid you in every possible way to make your venture fruitful.

Establish goals for each property

Before investing in a property, set up the goals. Figure out what you want to do with the possessions. Do you want to sell it immediately or hold it for long? Successful investors know how to earn profits on each property. Proper homework and exit plans curtail risk factors to a great extent.

Assess the tax situation

Taxes, a vital part of successful investment, can make a lot of difference between positive and negative cash flow. Hence, you must know your tax situation and use it for your aid. Hire a good tax accountant who will guide you through the various aspects of taxation.

Through inspection of property

A smart real estate investor is one who conducts a thorough inspection of property before spending. It's foolish to invest in an asset without proper examination. If you are unsure about anything, hire a surveyor.

Be optimistic and patient

Patience is the key to success in any business. Don't lose your patience when the market is not doing well. In such a scenario, don't lose hope and start taking wrong decisions. All successful investors in the sector have witnessed lows, but their commitment and optimism have helped them turn the tide. Stick to tried and tested strategies during rough periods. However, if they don't work out, then start exploring new tactics.


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Concorde Group Projects:- ReviewReal Estate Finding a New Track in Indian Economy

A big impact of recession is seen in the worldwide market, where many big companies posted big losses, asked for a bailout and even filed for the bankruptcy. The recession had such an impact on the world over economy that even a core business of a particular country went in loss with many citizens pulling their hands off from investment part.

Same happened with the Indian real estate market, the most bullish sector where not many hesitated before putting their money forward for an investment related to some plot, flat, office, shop etc.

In the month of September 2008, when recession captured the world with a full grip, the real estate of India suffered a big loss session. All the major reality players like Jaypee Group, Unitech and DLF came up with the schemes and rebates on flats to attract as many buyers as they can and sell off the reserve as soon as possible.

The cities like Mumbai, Delhi, Bangalore, Kolkata and National Capital Region accounts for big business of the country with many property owners earning big money from the rental income from homes and offices.

One can analyse the downfall of rental income in these cities as many fully constructed buildings are standing with a very less space occupied with them and that too on a small amount of rent in comparison with the rentals of 2007.

This downfall was not limited to the rental part of real estate industry but the pure buying and selling of properties also came to a halt after financial crises reached the Indian economy.

With the global economic crises on one side, leading players of real estate India like DLF and Unitech are focusing more on the repayment of debts as soon as possible.

This has resulted in big real estate players selling their personal office properties, shifting their focus from core property business to some other businesses like insurance and hospitality and selling off some part of the company by getting listed on the capital market.

However, according to the recent study conducted by several industry watchers, the real estate of India is coming back on profitable track with the demand for offices is increasing in major cities like Bangalore and Mumbai, however Delhi and NCR are still far from witnessing growth in demand as many are expecting further fall in rentals here.

Besides the growth factor in office and shop rentals, a slight growth is also seen in the buying and selling transactions of properties.

With the Indian economy coming on track again, the demand for flats are seen rising in past one month. The real estate developers like Amrapali, Parsvanath and Unitech are nor registering some potential bookings on their order books.

The recent festive season has also added some profits to the real estate industry when many were keen on buying a new home.

During the last festive season, a very low rush was seen for the real estate buying but this year, the banks came up with some attractive home loan schemes with the help of rebate provided by Reserve Bank of India.

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